This was it. I didn't call register component. Calling it did the trick It was a bit confusing. So If I assign the component in code it works but if it is assigned in Reality Composer Pro it doesn't for that I have to call register component. Is there a right place to call register component in the app? or just the closure of the reality view is fine?

So I realized something. If I assigned the ToyComponent, that I created as a new component in Reality composer pro in code using components.set(ToyComponent()) then that is working, but If I set the component in RealityComposerPro, that is not working for some reason. Seems like a bug

I created the ToyComponent in RealityComposerPro and attached to the root of the entities alongside with InputTarget and Collision Component.